Principles of Islamic Finance and Principles of Corporate Social Responsibility: What Convergence?

Simona Franzoni and Asma Ait Allali
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Simona Franzoni: Department of Economics and Management, University of Brescia, Contrada Santa Chiara 50, 25122 Brescia, Italy
Asma Ait Allali: Department of Economics and Management, University of Brescia, Contrada Santa Chiara 50, 25122 Brescia, Italy

Sustainability, 2018, vol. 10, issue 3, 1-11

Abstract: Islamic Finance, among its other features, figures as a financial and economic model based on principles and ethical values in which sustainable development and social responsibility play an essential role. The aim of this study is to illustrate the concept of Corporate Social Responsibility (CSR) with specific reference to Islamic financial institutions, their principles, values and objectives, in order to understand the underpinning dynamics and identify the convergences between the principles underlying conventional CSR and those of Islamic Finance. Specifically, the ultimate purpose of the comparison is to highlight how CSR may constitute a significant factor of convergence between Islamic and conventional finance systems, going beyond the logic of sustainability in short-term marketing policy and implementing medium- and long-term sustainability. This approach aims at increasing the potential for value creation and the pursuit of economic, social and environmental results for all stakeholders. This convergence should, finally, create conditions favourable to the harmonisation of the regulations and directives relative to CSR in the different countries, and therefore a better integration between Islamic finance institutions and conventional ones in the economic contexts.

Keywords: corporate social responsibility; Islamic finance; principles; convergence; opportunities (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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